Sequestration refers to a plan put in place by Congress in 2011 to come up with an effective way to reduce the national deficit.

That year, the Budget Control Act was passed, which included a condition that the debt ceiling would be temporarily increased so the country wouldn't default on its loans.

"It's a shame, it's not good governance. But this is a result of 12 people on a super committee, unable to come to terms with cutting our severe debt and deficit. This is what we have. It's not a good instrument, it's not a smart instrument," Hanna said.

Sequestration was put in place as a worst-case-scenario option in case an agreement couldn't be reached in Congress. With the March 1 deadline quickly approaching and no deal done, the possibility of sequestration becoming a reality is increasing, Hanna said.

Hanna said he wants to avoid what he says the White House is proposing, including replacing sequestration with a mix of spending cuts and tax increases.